Woodchipper Gunns (ASX: GNS) says it is continuing to assess the effects of the Japanese earthquake on the business outlook.

“Based on initial customer discussions and public comments, it appears the most significant direct impacts are across a number of the Nippon Paper Industry mills (notably Akita, Ishinomaki and Iwanuma),” the company said.

Gunns has not been a significant supplier to these mills and based on historical sales levels would expect an annual shipment volume of approximately 100,000gmt to the directly affected region.

“We understand other producers have suffered loss of inventory (woodchip, pulp and paper) and are undertaking plant assessments prior to recommencing production.”

“Gunns current sales commitments to the Japanese market are predominantly to mills located outside of the directly affected region.”